Exercise 16-7 The Sanding Department of Quik Furniture Company has the following

Question

Exercise 16-7 The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 7,330 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $36,981; labor $21,100; overhead $42,102. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25.)

QUIK FURNITURE COMPANY Sanding Department Production Cost Report For the Month Ended March 31, 2017 Equivalent Units Physical Units Conversion Costs Quantities Materials Units to be accounted for Work in process, March 1 Started into production Total units Units accounted for Transferred out Work in process, March 31 Total units

Explanation / Answer

Physical units Materials Conversion costs Units to be accounted for: Work in process, March 1 0 Started into production 10330 Total units 10330 Units accounted for: Transferred out 7330 7330 7330 Work in process, March 31 3000 3000 600 Total units 10330 10330 7930 Materials Conversion costs Total Unit costs Total costs 36981 63202 100183 Equivalent units 10330 7930 Unit costs 3.58 7.97 11.55 Costs to be accounted for: Work in process, March 1 0 Started into production 100183 Total costs 100183 Costs accounted for: Transferred out 84662 or 84661 Work in process, March 31 Materials 10740 Conversion costs 4782 15522 Total costs 100184 or 100183

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